Business A Starting Before Things To Do

When you decide to start a new activity, there is no need to rush. Indeed, there are several important things to do before starting a business. These preliminary steps are necessary in order to put all the chances on your side as part of your business creation project.

The Entrepreneur’s Corner tells you about 5 things to do before starting your business :

  • Study the profitability and financial soundness of your project

  • Find out about the aid to which you can claim

  • Complete the financing of your business creation project

  • Find the right place to exercise your future activity

  • Take stock of your project with a professional

Study the profitability and financial soundness of your business project

Before creating your business, it is essential to study precisely the profitability of your project as well as its financial soundness.

To determine the profitability of your business creation project, it is necessary to determine your forecast turnover and to estimate all the expenses that you will have to realize. On what is left, you must be able to remunerate yourself sufficiently (not forgetting to take into account social contributions).

Before starting your business, you need to know the amount of income you can claim based on your businees assumptions. This information is very important.

If the project is sufficiently profitable but the cash flow is a little tight, financial solutions must be found (larger contributions, financing of an investment by bank loan, preference for leasing instead of buying, etc.).

Find out about the aid to which you can claim

There are many ways to start a business, so you should educate yourself about what help you can get before starting your business .

Among the most common business creation aids, we can cite:

  • The measures offered by Pôle emploi: the maintenance of unemployment benefits in the event of a business creation, the payment in capital of part of the unemployment benefits ( ARCE );

  • Specific loans for business creators, in particular within the framework of innovative projects;

  • The support systems for business creation offered by BPI France and Active France, in particular in terms of guarantees on bank loans.

Finally, we did not mention ACRE (which replaced ACCRE at the start of 2019) in this list because this aid now benefits all business creators and buyers (with some exceptions).

Complete the financing of your business creation project

Before starting your business, you must complete the financing of your project. The assessment of the financing necessary for the implementation of your project is carried out thanks to your financing plan. In this financial table, you will have to report the financial resources that you mobilize as part of your business creation project (your contributions and your loans in particular). We explain how to do it here: determine the financing of a project.

If you finance your entire project with own funds and these are sufficient to pay for your investments and maintain a satisfactory level of cash flow, you do not need to work more on this aspect of the project.

On the other hand, if you plan to finance part of your project with external funding. You must get in touch with your financial partners before setting up your businees. Indeed, as long as you have not managed to find the necessary financing.

One last tip regarding your loan application: do not forget to find out, as we mentioned previously. About the guarantees offered by BPI France and France Active because you may be able to benefit from them.

Find the right place to exercise your future activity

The search of the place of performance of the future activity is one of the most important things to do before starting a business. Indeed, the choice of premises is strategic, whether in terms of location or configuration.

Before starting to visit premises. It is necessary to precisely define the desired characteristics (surface area, geographical area, equipment, budget, etc.). In the absence of reliable solutions. It is better to wait rather than choose a room that does not meet your main expectations. A commercial lease contract is a long-term contract (9 years) and you cannot terminate it early for 3 years.

Professionals who start a self-employed activity and who work directly with their clients are not affected by this step. In this case, a domiciliation of the company at the personal domicile is sufficient. Another solution is to opt for commercial domiciliation. This solution allows the entrepreneur to benefit from several useful services (administrative address, mail management, telephone reception, meeting rooms if necessary, etc.).

Take stock with a professional about your project

Another very important thing to do before setting up your business: make a full point with a professional about your project.

This approach is first of all reassuring because a seasoned professional will quickly be able to detect any problems in the configuration of your creation project. You may also have forgotten some things, and you will normally be notified about this.

Then, a competent professional will provide you with several tips about your future business. Especially from a legal and tax point of view. He can also assist you in your business creation steps.

Read also on starting a business :

  • What are the stages of a business creation ?

  • How to set up a business creation project ?

  • Why long does it take to start a company ?

  • How to start an online business ?

Read more: Tactics vs Strategy

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